Collateralized Transactions

9 Months Ended

Sep. 30, 2013

Collateralized Agreements [Abstract]

Collateralized Transactions

Collateralized Transactions

The Company receives financial instruments as collateral in connection with securities borrowed. Such financial instruments generally consist of equity and convertible securities but may include obligations of the U.S. government, federal agencies, foreign government and corporations. In most cases, the Company is permitted to deliver or repledge these financial instruments in connection with securities lending and other secured financings for meeting settlement requirements.

The table below presents financial instruments at fair value received as collateral that were permitted to be delivered or repledged and that were delivered or repledged by the Company as well as the fair value of financial instruments which could be further repledged by the receiving counterparty (in thousands):

	September 30, 2013		December 31, 2012
Collateral permitted to be delivered or repledged	$	1,317,369	$	50,717
Collateral that was delivered or repledged	1,210,408		50,717
Collateral permitted to be further repledged by the receiving counterparty	149,891		—

In order to finance securities positions and loan inventory, the Company also pledges financial instruments that it owns to counterparties who, in turn, are permitted to deliver or repledge them. Under these transactions, the Company pledges certain financial instruments owned to collateralize repurchase agreements and other secured financings. Repurchase agreements and other secured financings are short-term and mature within one year. Financial instruments owned and pledged to counterparties that do not have the right to sell or repledge such financial instruments consist of equity securities and loans.

The table below presents information about assets pledged by the Company (in thousands):

	September 30, 2013		December 31, 2012
Financial instruments owned, at fair value, pledged to counterparties that had the right to deliver or repledge (1)	$	6,803,143	$	52,261
Financial instruments owned, at fair value, pledged to counterparties that do not have the right to deliver or repledge	732,481		—

⁽¹⁾  Financial instruments owned, at fair value, pledged to counterparties that had the right to deliver or repledge includes $5.84 billion recorded within Assets within discontinued operations as of September 30, 2013.